Meanwhile, UE will expect to realise an attributable net disposal gain of about S$115.2 million, and receive net proceeds of about S$505.3 million.

UE said it is supporting the merger because it dovetails with its own plans to streamline the company's businesses across the group. The disposal allows the company to exit from non-strategic or non-core operations of WBL Corporation, a company it acquired in 2013. Net proceeds from the transaction will go towards repaying external borrowings and as general working capital, it added.

On the Nasdaq, after MFlex released the news on Thursday, its stock too jumped 35.2 per cent to S$23.0001.